I’ve think we’ve seen 4 or 5 of these bubbles at this point and so a lot of it is just cyclical. People that the bottom is in, they feel like the bear market is over and then they feel comfortable moving back into crypto. That’s the biggest reason this is happening but often it’s the influence of many individuals making their own decisions.

Soon after, the ShapeShift CEO was asked if there was something “more structural” in the cryptocurrency market that encourages bubbles and related activity, and Voorhees responded,

That’s a great question. There have to be bubbles in crypto because crypto is taking over the world and it’s not just going to advance 5% a month without end. If it did that, people would start buying it up and front-running it and turning into a bubble. So there’s no way to go from a zero dollar asset into one that is worth trillions without massive speculation and massive volatility in cyclical bubbles.

About Abhimanyu Krishnan

Abhimanyu is an engineer on paper but a writer by living. To him, the most celebratory aspect of blockchain technology is its democratic nature. While he’s hodling, he can be found reading a good book or making the local dogs howl with the sound of his guitar playing.